Memo from the CEO
Over the past week, you may have seen news headlines about the closure of Silicon Valley Bank of California and Signature Bank of New York. Understandably, this may lead to questions about the security of your funds at any institution where banking is conducted. We know this may create uncertainty and we would like to offer our reassurance.
Fort McClellan Credit Union is a not-for-profit financial institution where your funds are federally insured by the National Credit Union Association (NCUA) up to $250,000 per individual depositor. In addition, FMCU is well capitalized according to the NCUA and Alabama Credit Union Administration (ACUA) guidelines which means we maintain a Net Worth Ratio of greater than 7%.
Information for you as a Member of Fort McClellan Credit Union:
The National Association of Federally Insured Credit Union’s (NAFCU’s) President & CEO, B. Dan Berger highlighted the following:
· “The banks’ failings are a result of “their poor management of assets and liabilities – not a systemic failure” like the 2008 financial crisis;
· SVB and Signature Bank’s banking models are not representative of the U.S. financial ecosystem, as their businesses were heavily concentrated in startup companies, venture capital firms, and crypto companies;
· Over 90 percent of credit union deposits are insured by the federal government, compared to only 50 percent of banks’ deposits; and
· Federal regulators took swift action to meet the needs of the depositors and protect taxpayers from shouldering the cost of the failures.”
NCUA Board Chairman, Todd Harper, also released a statement, saying “the credit union system remains well-capitalized and on a solid footing.” Harper said the NCUA will continue to closely monitor credit union performance during examinations and offsite monitoring, and reiterated that “no one has ever lost a single penny of insured share deposits within the credit union system.” View the full article by clicking here.
As a valued Member, we are here to serve you. I encourage you to reach out to any member of our staff with any questions or concerns about your funds. I have full confidence that the employees you rely on daily will provide you with excellent service. You may also visit the NCUA’s Share Insurance Estimator to learn more by clicking here.
President & CEO
Fort McClellan Credit Unio